Economics

Housing: Bubble Trouble or Staying the Course?

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There is a lot of speculation that residential real estate markets are in a bubble. Certainly there is cause for concern: The rates of gains in prices over the past year are unsustainable, and a bit disturbing. We are seeing multiple offers on a huge percentage of homes that are sold, and buyers are racing to make offers.

Sustained strong real estate markets are usually driven by household formation, or an increase in the percentage of the population that owns a home. Neither is happening.  read more »

Subjects:

Taking Flight from Asia

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Viewed from a 50-year perspective, the rise of East Asia has been the most significant economic achievement of the past half century. But in many ways, this upward trajectory is slowing, and could even reverse. Simply put, affluence has led many Asians to question its cost, in terms of family and personal life, and is sparking a largely high-end hegira to slower-growing but, perhaps, more pleasant, locales.  read more »

Middle-Wage Jobs That Have Survived, and the States That Are Fostering Them

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Middle-skill jobs are in the same camp as green jobs, STEM jobs, and other groups of occupations that garner lots of attention: They can be defined many ways, by many rubrics. Regardless of the definition, however, it’s clear that middle-skill, or middle-wage, jobs have been in decline for years.  read more »

Shenzhen II?: The New Shanghai Financial Free Trade Zone

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Less than 35 years ago, China established its first special economic zone in Shenzhen, a prefecture (Note) bordering Hong Kong. This model is about to be expanded with the establishment of a new financially oriented free-trade zone in Shanghai, which could prove a major breakthrough in that city’s quest to become East Asia’s financial capital.  read more »

Cashing in on So Cal Culture

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Southern California has always been an invented place. Without a major river, a natural port or even remotely adequate water, the region has always thrived on reinventing itself – from cow town to agricultural hub to oil city, Tinsel Town and the “Arsenal of Democracy.”  read more »

Twitter And The Real Economy Of Jobs

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With Twitter’s high-profile IPO, the media and much of the pundit class are revisiting one of their favorite themes: the superiority of the brash, young urban tech elite, who don’t need to produce much in the way of profits to be showered with investor cash.  Libertarians will celebrate the triumph of fast-paced greed and dismiss concerns over equity; progressives may dislike the easy money but will be comforted when much of it ends up supporting their candidates and causes.  read more »

Viewing McJobs From the Flip Side

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The headline read, “We Have Become a Nation of Hamburger Flippers: Dan Alpert Breaks Down the Jobs Report.” Seems that Alpert, the managing partner of New York investment bank Westwood Capital, LLC, was unhappy that most of the jobs created in July were for low-wage workers.  read more »

Exporting Metros

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If there’s one thing that people of pretty much every political persuasion agree on, it’s the need to boost exports. This is true not just at the national level, but also the local one. The balance of world population and economic growth is outside the United States. McKinsey estimates that there will be an additional one billion people added to the global “consuming class” by 2025.  An economy focused solely on a domestic American or North American market is missing a huge part of the addressable market, dooming it to slower growth.  read more »

Bipartisan Distrust of the Beltway

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Much has been written and spoken about the deep divide between “red” and “blue” America, but the real chasm increasingly is between Washington and the rest of the country. This disconnect may increase as both conservatives and liberals outside the Beltway look with growing disdain upon their “leaders” inside the imperial capital. Indeed, according to Gallup, trust among Americans toward the federal government has sunk to historic lows, regarding both foreign and domestic policy.

The debate over Syria epitomizes this division. For the most part, Washington has been more than willing to entertain another military venture. This includes the Democratic policy establishment. You see notables like Anne Marie Slaughter and the New York Times' Bill Keller join their onetime rivals among the neoconservative right in railing against resurgent “isolationism” on the Right.  read more »

California’s New Feudalism Benefits a Few at the Expense of the Multitude

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California has been the source of much innovation, from agribusiness and oil to fashion and the digital world. Historically much richer than the rest of the country, it was also the birthplace, along with Levittown, of the mass-produced suburb, freeways, much of our modern entrepreneurial culture, and of course mass entertainment. For most of a century, for both better and worse, California has defined progress, not only for America but for the world.  read more »